Pacific Global ETFs launched two new funds on Thursday with the goal of seeking income and long-term growth of capital. They are the Pacific Global Focused High Yield ETF (FJNK) and the Pacific Global International Equity Income ETF (IDY).
Under normal circumstances, the funds seek to achieve their investment objective by investing in common stocks of international companies in developed countries outside of the U.S. that have above-average dividend yields. The funds primarily invest in common stocks of large and mid-capitalization companies (i.e., companies with capitalization of at least $2 billion).
When selecting portfolio companies, sub-adviser Cadence Capital Management LLC emphasizes companies that have a history of paying and/or growing dividends. Cadence Capital Management may sell a security when it no longer meet its investment criteria.
Under normal circumstances, the funds invest at least 80% of its assets (net assets plus any borrowings for investment purposes) in equity securities, including common stock, ADRs and GDRs, of international companies that pay regular dividends.
In making investment decisions for the funds, Cadence Capital Management considers dividend-paying companies in the MSCI EAFE Index and stocks of companies similar to those in the MSCI EAFE Index. Cadence Capital uses a rules-based approach that selects the stocks in this universe based on dividend-paying criteria and financial quality characteristics.
The Portfolio Weights
Cadence Capital Management weights the funds’ portfolio based on the adjusted market capitalization of each portfolio security where the maximum individual security weight at portfolio creation or rebalancing is capped at 2.5%. Modifications to constituent weights, including the maximum position size, may be included in order to help achieve risk, return, or portfolio objectives.
Generally, the funds will hold between 200-450 securities. Each of the consumer discretionary, consumer staples, financial services, health care, industrial, information technology, and real estate sectors may represent a significant portion of the Funds’ investment portfolio.
J. Paul Dokas, CFA Senior Portfolio Manager and Managing Director of Cadence Capital Management, and Robert E. Ginsberg, CFA Senior Portfolio Manager and Managing Director of Cadence Capital Management, are the primary persons responsible for the day-to-day management of the funds and have served as the Sub-Adviser’s portfolio managers for these funds since its inception.
Cadence Capital Management employs an “active management” investment strategy in seeking to achieve the Funds’ investment objective. The portfolio will be reconstituted and rebalanced quarterly, if necessary. Rebalancing frequency may be modified based on periodic and systematic portfolio review.
More Information on FJNK and IDY can be found at the Pacific Global ETFs website. For more market trends, visit ETF Trends.
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